In several states, you can purchase broad form vehicle insurance as a way to file an SR22 certificate for license reinstatement. Broad form insurance covers a single policyholder, rather than insuring a particular vehicle.
Broad form vehicle insurance
In some states, you can buy broad form vehicle insurance. This type of insurance covers one named-operator policyholder only. You can purchase it whether you own a vehicle or not. Broad form insurance is a cheaper way to file an SR22 certificate, but it has severe limitations. If you don’t own a car, the policy covers you when you drive a borrowed vehicle. If you own a car, it covers you when driving any vehicles you own.
What is a non owner policy?
Often, an SR22 or FR44 certificate is endorsed to a non owner policy to reinstate your license when you don’t own a vehicle. Non owner insurance covers only you, the policyholder. It provides limited liability insurance coverage when you drive a non-owned car. You can also purchase a non owner policy on its own, without an SR22 or FR44 rider. There are restrictions and exclusions to know about with this kind of insurance.
It may seem strange to buy an insurance policy to drive a car if you don’t own a vehicle, but it’s a wise thing to do. Even if you don’t own a car, truck, or motorcycle, you may sometimes borrow one owned by someone else. If you do, you can be liable for injury or property damage if you cause an accident while driving it. A non owner policy provides secondary liability coverage if you’re in an at-fault accident that injures or causes property damage to the other party involved.
What does a non owner policy cover?
SR22 non owner insurance and FR44 non owner insurance policies have coverage limitations. They cover only you – the person listed on the declaration page. You cannot add other drivers to this policy. This type of insurance covers you when operating any vehicle you do not own (a vehicle owned and insured by someone else). It will cover injury and damage claims brought by the other party or parties in an accident when you are at fault. It does not cover damage to the vehicle you were driving or injury to you or passengers in the car you were driving. You cannot get comprehensive or collision coverage (repairs to the vehicle you were operating) with a non owner policy.
Any vehicle you drive must have owner insurance coverage, the primary insurance. Your non owner policy is secondary insurance. For example, if you borrow your neighbor’s car and cause an accident, your neighbor’s auto insurance would cover damages up to the limits of their policy. Your insurance would provide coverage beyond those limits, if necessary.
Non owner insurance does not cover:
- A vehicle registered in your name
- Vehicles in your household
- Vehicles provided for your regular or frequent use
- Work-related vehicles owned by your employer
- Members of your household
Continuous liability insurance coverage
One benefit of having a non owner policy is that many auto insurance companies offer a discount to continuously insured people (no lapses in coverage). Suppose you decide to buy a vehicle in the future. In that case, non-owner insurance provides ongoing, continuous coverage that will help reduce your auto insurance premiums.
If you have a non owner policy and decide to buy a vehicle, please talk with your insurance provider first. You’ll need to switch to an owner/owner-operator policy and pay any additional premium (if applicable). Failure to do this will result in denial of coverage if you have an accident in that vehicle.
When you need SR22 or FR44 non owner insurance coverage, call UltraCar Insurance for a quick quote and low rate from one of our experienced agents. You can also start an online quote now.
